The First Industry Subject Index Of Gem Under Registration System

The index investment tools of GEM market were further enriched.

On October 26, in order to reflect the operation characteristics of Listed Companies in related industries of Shenzhen Stock Exchange, Shenzhen Stock Exchange, together with its wholly-owned subsidiary Shenzhen Securities Information Co., Ltd., jointly released the gem technology index and gem medical and health index, further enriching the gem index investment tools. This is also the gem after the implementation of the registration system, gem market first industry theme index.

Specifically, gem science and technology index is abbreviated as Chuang tech, with the index code of 399276. The base date of the index is December 31, 2012, and the base date is 1000 points. It is also referred to as the pharmaceutical business start-up index of 3975 on the 12th day of 2012.

New index focuses on key industries

"In the past 10 years, the market share of science and technology and medicine industries has increased rapidly, and the trading is relatively active. The market itself has this demand, and the exchange is also following the trend." Wang Han, chief economist of Societe Generale Securities, said for the release of two industry theme indexes.

According to the data of Shenzhen Stock Exchange, by the end of September 2020, the total market value of high-tech industry on GEM exceeded 5 trillion yuan, and that of pharmaceutical industry exceeded 2 trillion yuan. According to the relevant person in charge of Shenzhen Stock Exchange, the release of gem science and technology index and gem medicine and health index is conducive to better reflect the development achievements of gem advantageous industries and provide high-quality investment targets for the market to share the development dividend of gem.

The gem science and technology index and gem medicine and health index are selected from Shenzhen Stock Exchange GEM listed companies. Among them, the gem science and technology index selects 50 stocks from science and technology related industries with high R & D investment, good fundamental performance and good liquidity. The gem medical and health index selects 50 stocks with large market value and good liquidity from the medical and health industry to form sample stocks.

It is worth mentioning that the two indexes are operating well. From the end of 2012 to the end of September 2020, the cumulative income of the gem science and technology index is 459%, and that of the gem medicine and health index is 495%.

"The main companies listed on the gem are still high-tech industries, and this technology sector needs a relatively professional sub index." Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that there are a variety of listed companies on the gem, especially in the stock market of gem. There are still many non-tech companies in the stock market. If the traditional gem index is used to provide investors with market up and down signals, all the stocks and incremental markets of gem will have a great impact The general fluctuation of listed companies can not accurately represent the dynamics of the science and technology industry.

In contrast, medical shares have a unique influence in China's A-share market. Dong Dengxin believes that if encountering a major epidemic such as Xinguan pneumonia, the changes in the whole pharmaceutical sector will be quite severe. Therefore, it is very important for investors to correctly choose investment targets and understand the changes in the pharmaceutical sector by launching the gem medical and health index.

Rich gem index investment tools

Not only from the perspective of the industry, but also for the GEM market after the pilot registration system, the creation of science and technology and the creation of medicine are also at the right time.

On August 24, 2020, 18 enterprises collectively opened trading on the gem, marking the smooth implementation of the registration system reform of the gem.

Shenzhen Stock Exchange said that after 11 years of development, gem has become an important market for supporting innovation and entrepreneurship in the world. With the reform of gem and the smooth implementation of pilot registration system, gem is ushering in more high-quality new economy enterprises. The growth enterprise market has distinctive industry characteristics and obvious advantages in information technology, medicine and health, which has formed a agglomeration effect.

"The total market value of listed companies engaged in pharmaceutical production and R & D on GEM is more than 12 trillion yuan, which is the largest market value industry of gem," said an analyst of a securities company. "After the pilot registration system, with the relaxation of listing threshold, more innovative biomedical companies are willing to come to the market. At this time, it is necessary to compile the relevant industry subject index."

According to the current public data, after the pilot registration system of gem, 9 pharmaceutical manufacturing enterprises have applied for listing, and two of them have been registered and effective.

"These two industry theme indexes can more accurately reflect the separate and specific trends of gem technology stocks and pharmaceutical stocks, and can provide investors with a very important investment vane." Dong Dengxin said that from the perspective of sentiment index, technology stocks and pharmaceutical stocks are two types of plates with very popular benchmark. Therefore, the implementation and release of these two sub indexes of gem is helpful to reflect the dynamics of GEM market more accurately.

"The market has a relatively unified standard, which can clearly understand the development direction of the two industries." Wang Han said that the introduction of this unified standard can also serve as a reference for institutions to issue index funds in related fields.

Wang Han pointed out that the introduction of the subdivision index has also given an obvious signal to a certain extent. Different companies' in and out indexes are publicly disclosed to the market, which means that there is an extra external evaluation system.

Li Zhan, chief economist of Zhongshan securities, said that the introduction of relevant industry theme index would provide investors with targeted optional targets. For science and technology innovation enterprises, the introduction of index products is expected to cultivate more powerful scientific and technological innovation enterprises for China's market.

Dong Deng suggested that a series of derivative products, such as stock index futures of science and technology index of science and technology index of science and technology index, or stock index futures of medicine index, could be developed in the future. In addition, the corresponding stock fund, such as the stock fund that replicates the technology index, or the stock fund that replicates the medical and health index, can also be expected.